Key European FinTech investment stats in H1 2026:
- European FinTech investments increased 5% YoY
- If investment pace continues funding is set to increase 18% in 2026 driven by a growth in deals under $100m
- Allica Bank, a digital business bank focused on serving established small and medium-sized businesses, raised $155m in a Series D round, marking one of the biggest European FinTech deals of the first half of the year
European FinTech investments increased 5% YoY
European FinTech market attracted $9.2bn across 386 deals in H1 2026, a 5% increase in funding compared to the $8.7bn recorded in H1 2025, though deal count edged down by 2% from 393 transactions over the same period.
The modest nature of those movements reflects a market that is, broadly speaking, holding its ground rather than breaking new territory.
The average deal size in H1 2026 came in at $23.8m, up 8% from $22.1m in H1 2025 and above the $20.9m average recorded across 2025, suggesting that while deal volumes have softened slightly, the scale of individual transactions has continued to grow.
Set against 2025’s total of $15.5bn across 742 deals, H1 2026 accounts for 59% of last year’s funding and 52% of its deal volume, indicating the market is tracking modestly ahead of last year’s pace.
If investment pace continues funding is set to increase 18% in 2026 driven by a growth in deals under $100m
Should H1 2026’s investment pace continue, 2026 would close with 772 deals and $18.4bn in total funding, representing a 4% increase in deal volume and an 18% rise in capital raised compared to 2025.
The composition of H1 2026 funding points to a market where both deal size segments have contributed to the overall picture in broadly equal measure.
Deals of $100m or more raised $5.3bn in H1 2026, a 2% increase on the $5.2bn recorded in H1 2025, and accounted for 58% of total half-year funding, marginally down from 60% in H1 2025.
Smaller deals raised $3.8bn in H1 2026, an 11% increase on the $3.5bn recorded in H1 2025, with their share of total funding rising from 40% to 42%.
Across 2025, larger transactions generated $9.1bn, representing 58% of annual funding, with sub-$100m deals contributing the remaining $6.5bn, or 42%.
The stability of that split between H1 2025, 2025 as a whole, and H1 2026 is notable.
It suggests the relative balance between larger and smaller transactions in European FinTech has remained consistent, even as the overall level of funding has edged higher.
Allica Bank, a digital business bank focused on serving established small and medium-sized businesses, raised $155m in a Series D round, marking one of the biggest European FinTech deals of the first half of the year
The round, which values the company at $1.2bn, was supported by Ventura Capital, GLG and Sona AM, alongside existing investors TCV and Blue Owl.
Since launching its lending services in 2020, Allica has lent the equivalent of $5bn and secured the equivalent of $6.6bn in customer deposits, and now serves over 30,000 SMBs, representing around 5% of the market.
The bank offers commercial mortgages, asset finance and bridging finance, and entered the embedded finance market through the acquisition of London-based FinTech Kriya in October 2025.
Proceeds will support continued lending growth, deeper investment in its proprietary technology stack including AI-enhanced SMB lending solutions, and the bank’s first expansion beyond the UK, with a target of capturing 10% of the SMB finance market by 2028.
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